M/s. Matangi Traders v. The Joint Commissioner (CT) (Legal)

dated 22.08.2008 pending disposal of the writ petition. Counsel for the Petitioner: SMT PRIYANVITHA FOR SRI VEDULA SRINIVAS Counsel for the Respondents: GP FOR COMMERCIAL TAX WRIT PETITION NO: 20132 OF 2008 Between: o/®- o/o. K. Ch. Ramana Rao R/o. Peddapuram, East Godavari District. Traders, Peddapuram, Rep. by its Proprietor K. Krishna AND ...Petitioner The Joint Commissioner (CT) (Legal), Office of the Commissioner of Commercial Taxes, Exhibition Grounds Road, A.P Hyderabad. ...Respondent Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a writ of certiorari or any other appropriate Writ Order or orders. Direction or Directions to quash the order of the Ref.No. L-V(3)508/2008 dated 22-8-2008. respondent in lA NO: 1 OF 2023 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to receive the counter copies on record by allowing the leave petition in the above writ petition. I.A. NO: 1 OF 2008fWPMP. NO: 26283 OF 2QQ81 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the order of the respondent in Ref.No. L-V(3)508/2008 dated 22-8-2008 pending disposal of the writ petition. Counsel for the Petitioner: SMT PRIYANVITHA FOR SRI VEDULA SRINIVAS Counsel for the Respondents: GP FOR COMMERCIAL TAX WRIT PETITION NO: 20133 OF 2nns Between: Sree Chemicals and Fertilizers, Peddapuram, East Godavari District Partner K.Ch.Ramana Rao S/o. Venkataramana, Aged 70 y vdi o AND ...Petitioner The Joint Commissio^ner (CP) (Legal), Office of the Commissioner of Commercial Taxes, Exhibition Grounds Road, A.P., Hyderabad. ...Respondent Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a writ of certiorari or any other appropriate Writ Order or orders. Direction or Directions to quash the order of the respondent in Ref.No. L-V(3)509/2008 dated 22-8-2008. lA NO: 1 OF 202.3 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to receive the counter copies on record by allowing the leave petition in the above writ petition. LA. NO: 1 OF 2008fWPMP. NO: 26284 OF ?nn«| Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the order of the respondent in Ref.No. L-V(3)509/2008 dated 22-8-2008 pending disposal of the writ petition. Counsel for the Petitioner: SMT PRIYANVITHA FOR SRI VEDULA SRINIVAS Counsel for the Respondents: GP FOR COMMERCIAL TAX w WRIT PETITION NO: 20139 OF 2008 Between: Sree Chemicals and Fertilizers, Peddapuram, East Godavari District, rep. by its Partner K.Ch.Ramana Rao S/o. Venkataramana. AND ...Petitioner The Joint Commissioner (CP) (Legal), Office of the Commissioner of Commercial Taxes, Exhibition Grounds Road, A.P., Hyderabad. ...Respondent Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ of Certiorari or any other appropriate writ order or orders, direction or directions to quash the order of the Respondent in Ref.No.L-V(3)511/2008 dated 22.8.2008. I.A. NO: 1 OF 2008(WPMP. NO: 26290 OF 2008) Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the order of the Respondent in Ref.No.L-V(3)5 11/2008 dated 22.8.2008 pending disposal of the writ petition. Counsel for the Petitioner: SMT PRIYANVITHA FOR SRI VEDULA SRINIVAS Counsel for the Respondents: GP FOR COMMERCIAL TAX WRIT PETITION NO: 20150 OF 2008 Between: Sree Chemicals and Fertilizes, East Godavari District, rep.by its partner K.Ch.Ramana Rao, S/o.Venaktaramana aged 70 years AND ...Petitioner The Joint Commissioner (CP) (Legal), Office of the Commissioner of Commercial Taxes, Exhibition Grounds Road, A.P., Hyderabad. ...Respondent Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a writ of Certiorari or any other appropriate writ order or order direction or directions to quash the order of the Respondent Ref.No.L-V(3)512/2008 dated 22.8.2008. I.A. NO: 1 OF 2008(WPMP. NO: 26303 OF 2QQ8t Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the order of the Respondent in Ref.No.L-V(3)5 12/2008 dated 22.8.2008 pending disposal of the writ petition. Counsel for the Petitioner: SMT PRIYANVITHA FOR SRI VEDULA SRINIVAS Counsel for the Respondents: GP FOR COMMERCIAL TAX WRIT PETITION NO: 20162 OF 2008 Between: Sree Chemicals and Fertilizers, Peddapuram, East Godavari District Rep. byits Partner, K.Ch. Ramana Rao, S/o. Venkataramana, Age 70 Y ©3rs. AND ...Petitioner The Joint Commissioner (CP) Legal, Office of the Commissioner of Commercial Taxes, Exhibition Grounds Road, A.P Hyderabad. Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a writ of certiorari or any other appropriate Writ Order or ...Respondent orders, Direction or Directions to quash the order of the respondent in Ref.No. L-V(3)510/2008 dated 22-8-2008. I.A. NO: 1 OF 2008(WPMP. NO: 26324 OF 2008) Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the order of the respondent in Ref.No. L-V(3)510/2008 dated 22-8-2008 pending disposal of the writ petition. Counsel for the Petitioner: SMT PRIYANVITHA FOR SRI VEDULA SRINIVAS Counsel for the Respondents: GP FOR COMMERCIAL TAX The Court made the following common order: APHC010562322008 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI [3488] (Special Original Jurisdiction) WEDNESDAY, THE SIXTEENTH DAY OF OCTOBER TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE R F^AGHUNANDAN RAO THE HONOURABLE SRI JUSTICE HARINATH.N WRIT PETITION Nos.20089. 20132, 20133, 20139, 20150 & 20162 of 2008 Between: M/s. Matangi Traders, E.g. Dist. ...PETITIONER AND The Joint Commr Ct ...RESPONDENT Counsel for the Petitioner:

1.VEDULASRINIVAS Counsel for the Respondent:

1.GP FOR COMMERCIAL TAX The Court made the following Common Order: Cper Hon'ble Sri Justice R. Raghunandan Rao; As the issues raised in all these Writ Petitions are one and the same and they are being disposed of by way of this Common Order.

#2. In all these cases, the petitioners are dealers dealing with Sodium Bicarbonate (Soda Ash) and Magnesium Sulphate (Epsom Salt).

#3. All petitioners, while being assessed under the Andhra Pradesh Goods and Services Tax Act, 2017 [for short “the APGST Act”] had Ns claimed that the rate of tax payable on the sale of these goods would be 8% on the basis of G.O.Ms.No.189, dated 07.02.2005.

#4. This contention was partly accepted by the Assessing Officer. However, some of these goods were sought to tax @12% on the ground that they are not covered under G.O.Ms.No.189, dated 07.02.2005. Aggrieved by the said Orders of Assessment, the petitioners had filed appeals against their respective Assessment Orders. The Appellate Deputy Commissioner (CT), Visakhapatnam accepted the contentions of the petitioners and allowed appeals. Consequent to the said Orders, the Assessing Officers had revised their Assessment Orders.

#5. At that stage, the Revisional Authority revised the Orders appeal and, after hearing the petitioners, had held against the petitioners and directed payment of tax @12% on the sale of these goods.

#6. Aggrieved by the said Orders of revision which are all dated

22.08.2008, the petitioners have approached this Court by way of the present set of Writ Petitions.

#7. Smt. Priyanvitha, learned counsel appearing behalf of Sri Vedula Srinivas, learned counsel for the petitioners would submit that the Revisional Order proceeded on the ground that the goods in question were used as raw material for manufacture of other goods and as such, they cannot be treated as chemicals. She would submit that the goods would not lose their character of chemicals merely because they were used as raw material in manufacture of other goods and the finding of the Revisional Authority that the i. 3 l> I nature of the goods would change from chemicals to other goods which do not fall within the purview of G.O.Ms.No.189. dated 07.02.2005 is not based on any logic or provision of law. She would also rely upon the Judgment of a Division Bench of the erstwhile High Court of Judicature, Andhra Pradesh at Hyderabad, dated 07.06.2007, in W.P.No.87 of 2007.

#8. The learned Government Pleader for Commercial Tax, on the other hand, would submit that the goods in question cannot be treated as chemicals merely because they can also be called by their chemical names. ’ He would submit that the Revisional Authority after looking at the purpose for which the goods were purchased in the market had held that these should be treated as raw materials and not chemicals. He would further submit that there is no infirmity in the said reasoning and the Order of Revisional Authority ought to be upheld.

#9. G.O.Ms.No.189, dated 07.02.2005 reads as follows:- “LEVY OF TAX ON THE SALE OF ALL CHEMICALS BESIDES CALCIUM CARBIDE @ 8% UPTO 30-09-2004-REVISED NOTIFICATION. [G.O.Ms.No. 189. Revenue, (CT. II), 7th February, 2005.1 In exercise of the powers conferred by Sub-section (1) of Section 9 of the Andhra Pradesh General Sales Tax Act, 1957 (Act No. VI of 1957), and in partial modification of the orders issued in G.O.Ms.No.1021, Revenue, Dated 13-12-2004, the Governor of Andhra Pradesh hereby directs that the rate of tax on the sale of 'All Chemicals' besides "Calcium Carbide', which are not covered under Entry (9) of Dyes and Chemicals, in the State, shall be at eight paise in the rupee, upto 30-09- 2004 only, under the said Act. N. S. HARIHARAN Special Chief Secretary to Government.'

#10. This G.O. directs a levy of sale tax @8% on all chemicals which are not covered under Entry-9 which is headed as dyes and chemicals. A perusal of Entry-9 would show that the goods mentioned above are not 4 enumerated in Entry-9. In a similar situation, a Division Bench of erstwhile High Court of Judicature, Andhra Pradesh at Hyderabad while dealing product Sodium Hydro Sulphite had, in the Judgment mentioned above, held that any chemical which is not enumerated in Entry-9 of VI Schedule would fall with the within the ambit of G.O.I\/ls.No.189, dated 07.02.2005 and would be taxable @8% only.

#11. In view of the above Judgment, it would have to be held that all the goods in question would have to be taxed only @8% as they are chemicals and the usage of these chemicals as raw materials would not detract from the categorisation of these goods as chemicals.

#12. Accordingly, these Writ Petitions are allowed setting aside the Revision Orders of the Joint Commissioner (CT) (Legal), Office of the Commissioner of Commercial Taxes, A.P Hyderabad dated 22.08.2008. There shall be no order as to costs. As a sequel, pending miscellaneous petitions, if any, shall stand closed. That Rule Nisi has been made absolute as above witness the Hon’ble Sri Dhiraj Singh Thakur, The Chief Justice on this Wednesday, The Sixteenth day of October, Two Thousand and Twenty Four. y To, //TRUE COPY// Sd/-K.SmNlVASA RAJU assistant registrar s Ton officer

#1. The Joint Commissioner (CP) Legal, Office of the Commissioner of Commercial Taxes, Exhibition Grounds Road, A.P Hyderabad.

#2. One CC to Sri Vedula Srinivas, Advocate [OPUC]

#3. Two CCs to GP for Commercial Tax, High Court of Andhra Pradesh. [OUT]

#4. Two CD Copies RAM J HIGH COURT DATED;16/10/2024 COMMON ORDER WP.Nos.20089, 20132, 20133, 20139, 20150 & 20162 of 2008 7^ o 0 5 NOV 202'i 0>}i . Currem Section ^i!5^£eSPATCVt^^ 'kJ^ ALLOWING ALL THE WPs WITHOUT COSTS